Agriculture Deputy Under Secretary Doug O’Brien today announced that USDA is seeking applications from eligible lenders for loan guarantees to finance the construction or rehabilitation of rural rental housing.
“Working to ensure that individuals and families in rural areas have safe, decent and affordable housing is a major part of USDA Rural Development’s mission,” O’Brien said. “USDA’s housing programs make a real difference in the lives of thousands of rural Americans nationwide by helping them obtain housing opportunities that they might not otherwise have. Revitalizing rural rental housing helps create construction jobs and maintain safe and stable rural communities.”
USDA is seeking proposals from lenders for loans under the Guaranteed Rural Rental Housing Program. The Department plans to make up to $150 million available. Approved applications from prior years’ notices will be the first to receive funding.
Loan guarantees are available to construct, acquire and rehabilitate affordable rural rental housing. USDA will review responses submitted by eligible lenders, on the lender’s letterhead, and signed by both the prospective borrower and lender. Although a complete application is not required in response to this notice, eligible lenders may submit a complete application with a response.
The response deadline is Dec. 31, 2015. Details are on page 29159 of today’s Federal Register. Selected responses that develop into complete applications will normally be funded with the fiscal year funds available on the date the application is completed.
This program continues its successful record of providing affordable rural rental housing. When the community of River Falls, Wis., realized there was a shortage in quality, affordable rental housing for area seniors, it turned to USDA Rural Development. In response, the Agency approved a loan guaranteed through First National Bank of River Falls to construct a 24-unit facility for residents age 55 and older. The complex, Windmill Place, has been an overwhelming success and is a great asset within the River Falls community.
Since 2009, USDA has provided new or rehabbed rental homes to 16,000 families through the Guaranteed Rural Rental Housing Program.
President Obama’s plan for rural America has brought about historic investment and resulted in stronger rural communities. Under the President’s leadership, these investments in housing, community facilities, businesses and infrastructure have empowered rural America to continue leading the way – strengthening America's economy, small towns and rural communities. USDA’s investments in rural communities support the rural way of life that stands as the backbone of our American values.